Have Keynesian policies bankrupted economies around the world?

  • Author's opinion on subject

    Yes I believe that this has been the case. For example, let's look at the United Kingdom:
    The UK in 1976 was virtually bankrupt, and as a result required funds from the IMF in exchange for budget cuts and other measures which led to the so-called "Winter of Discontent" in 1978-1979. This is a basic example of what the predominant economic school of thought, known as Keynesian economics resulted in because it was common practice in those days. Governments everywhere then needed to take measures to avoid such a situation, reversing the problem somewhat.
    I will not delve into a huge argument in relation to this matter, yet it is evident to me that these sorts of policies fail in the long run. The US fiscal crisis in recent times proved to me that this was the case. How can governments afford to repay the interest on their loans? Many countries around the world have far too much debt, and cannot prosper as a result. The common Keynesian view, "Spend now, pay later" does not seem consistent with reality as countries eventually go bankrupt, as any individual or business would.

    That is my basic argument here.

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